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A tsunami or tidal wave is a series of water waves (called a tsunami wave train) caused by the displacement of a large volume of a body of water, usually an ocean, but can occur in large lakes. Tsunamis are a frequent occurrence in Japan; approximately 195 events have been recorded. Due to the immense volumes of water and energy involved, tsunamis can devastate coastal regions.
Earthquakes, volcanic eruptions and other underwater explosions (including detonations of underwater nuclear devices), landslides and other mass movements, meteorite ocean impacts or similar impact events, and other disturbances above or below water all have the potential to generate a tsunami.
The Greek historian Thucydides was the first to relate tsunami to submarine earthquakes, but understanding of tsunami's nature remained slim until the 20th century and is the subject of ongoing research. Many early geological, geographical, and oceanographic texts refer to tsunamis as "seismic sea waves."
Some meteorological conditions, such as deep depressions that cause tropical cyclones, can generate a storm surge, called a meteotsunami, which can raise tides several metres above normal levels. The displacement comes from low atmospheric pressure within the centre of the depression. As these storm surges reach shore, they may resemble (though are not) tsunamis, inundating vast areas of land. Such a storm surge inundated Burma in May 2008.

Tsunamis can be generated when the sea floor abruptly deforms and vertically displaces the overlying water. Tectonic earthquakes are a particular kind of earthquake that are associated with the earth's crustal deformation; when these earthquakes occur beneath the sea, the water above the deformed area is displaced from its equilibrium position. More specifically, a tsunami can be generated when thrust faults associated with convergent or destructive plate boundaries move abruptly, resulting in water displacement, due to the vertical component of movement involved. Movement on normal faults will also cause displacement of the seabed, but the size of the largest of such events is normally too small to give rise to a significant tsunami.
Tsunamis have a small amplitude (wave height) offshore, and a very long wavelength (often hundreds of kilometers long), which is why they generally pass unnoticed at sea, forming only a slight swell usually about 300 millimetres (12 in) above the normal sea surface. They grow in height when they reach shallower water, in a wave shoaling process described below. A tsunami can occur in any tidal state and even at low tide can still inundate coastal areas.
On April 1, 1946, a magnitude-7.8 (Richter Scale) earthquake occurred near the Aleutian Islands, Alaska. It generated a tsunami which inundated Hilo on the island of Hawai'i with a 14 metres (46 ft) high surge. The area where the earthquake occurred is where the Pacific Ocean floor is subducting (or being pushed downwards) under Alaska.
Examples of tsunami at locations away from convergent boundaries include Storegga about 8,000 years ago, Grand Banks 1929, Papua New Guinea 1998 (Tappin, 2001). The Grand Banks and Papua New Guinea tsunamis came from earthquakes which destabilized sediments, causing them to flow into the ocean and generate a tsunami. They dissipated before traveling transoceanic distances.
The cause of the Storegga sediment failure is unknown. Possibilities include an overloading of the sediments, an earthquake or a release of gas hydrates (methane etc.)
The 1960 Valdivia earthquake (Mw 9.5) (19:11 hrs UTC), 1964 Alaska earthquake (Mw 9.2), and 2004 Indian Ocean earthquake (Mw 9.2) (00:58:53 UTC) are recent examples of powerful megathrust earthquakes that generated tsunamis (known as teletsunamis) that can cross entire oceans. Smaller (Mw 4.2) earthquakes in Japan can trigger tsunamis (called local and regional tsunamis) that can only devastate nearby coasts, but can do so in only a few minutes.
In the 1950s, it was discovered that larger tsunamis than had previously been believed possible could be caused by giant landslides. These phenomena rapidly displace large water volumes, as energy from falling debris or expansion transfers to the water at a rate faster than the water can absorb. Their existence was confirmed in 1958, when a giant landslide in Lituya Bay, Alaska, caused the highest wave ever recorded, which had a height of 524 metres (over 1700 feet). The wave didn't travel far, as it struck land almost immediately. Two people fishing in the bay were killed, but another boat amazingly managed to ride the wave. Scientists named these waves megatsunami.
Scientists discovered that extremely large landslides from volcanic island collapses can generate megatsunami, that can travel trans-oceanic distances.

Reference:
http://en.wikipediawiki/Tsunami